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Fall 2017
DRIVING
When is the best time to buy life insurance?, Pg. 3 • Germania’s Claims Fraud Unit, Pg. 4
A Message from the President
I continue to be amazed by the rapid advancements in technology we’re experiencing. Just think — the Apple smartphone celebrated its 10th anniversary this year. Many of us can’t imagine life without a smartphone. In addition, autonomous and assisted-driving vehicles, drones, and a variety of home devices connected to the internet will continue to have an impact on us. Not all of these impacts are favorable. Not a day goes by that you don’t hear of an accident caused by distracted drivers. Germania’s auto results over the past three years have been affected by distracted driving. I know at times when I have used my hands-free phone while driving, I will not remember having driven over a certain stretch of the roadway. Any access to technology while driving reduces our focus. Please be safe and refrain from using your phone while driving. Please also be mindful of a new law that went into effect Sept. 1 that makes it illegal to text while driving. Germania is embracing new technology to better serve our policyholders. We have a new smartphone app that allows you to upload photos of accidental damage to your vehicle and to send them to your claims adjuster. You can file a claim directly by dialing 877-GERMANIA. Or you can go online to file a claim — and check the status of your claim — at www.GermaniaInsurance. com. Germania is committed to ensuring you have the best customer experience possible, and we pledge to continue to find ways to improve the speed and efficiency of our claims process. Also, if your vehicle is damaged in an accident, we hope you will take advantage of Germania’s Premier Service (GPS), a network of auto repair shops devoted to getting you back in your vehicle as quickly as possible. Germania guarantees the work of our Germania Premier Service network of professional auto body facilities. Of course, you’re free to choose your own repair facility. Germania Premier Service shops just make the repair experience more convenient and efficient. If you are on Facebook, be sure to “like” Germania for our insurance-related tips and helpful videos. Please share posts you think might benefit your friends. Let us hear from you, too, by commenting on posts you like. Germania is also on Twitter and LinkedIn, and we’ve just added Instagram for posting videos and images. Search for us by our handle, @TexansTrust, on Facebook, Twitter and Instagram and by the name “Germania Insurance” on LinkedIn. After a hotter than normal summer, let’s hope cooler temperatures are right around the corner. Have a safe and happy fall season, and as always, thank you for trusting Germania with your insurance needs.
Germania Farm Mutual Insurance Association 507 Hwy. 290 East • Brenham, Texas 77833 • 1-800-392-2202 • GermaniaInsurance.com
Germania Today (USPS 086230) Published quarterly by Germania Farm Mutual Insurance Association Postmaster: Send address changes to Germania Today at P.O. Box 645, Brenham, TX 77834. Periodical postage paid at Brenham, Texas and additional mailing offices. Subscription price is 50 cents per year included in yearly premium.
Paul Ehlert
President & Chief Executive Officer Senior ExecutiveVice President
Blake Lovelace Rodney Foerster Derrell Krebs Laura Popp James Pharaon
ExecutiveVice President & Chief Marketing Officer Secretary/Treasurer & Chief Financial Officer
Director of Corporate Communications
Advertising & Brand Manager
LisaTrow
Corporate Communications Specialist
Fall 2017 • Volume 43, Issue 3
Julia Rosenfeld
ContributingWriter
2 | Germania Today
Life Lines
There is a lot to do after an automobile accident: The claim must be filed, the damage has to be inspected, and you have to find a reputable shop to make the repairs. Germania Premier Service helps you navigate those waters, giving you a faster, more convenient experience from start to finish. The GPS program links Germania memberswithanetworkofapproved repair shops committed to providing you with the highest quality repairs and top-notch customer service. Here’s how it works: • When you report your claim, ask your adjuster for a list of participating shops in your area. • Drive your vehicle into one of the participating shops — or have it towed there — and an expert will inspect the damage, coordinate the estimate with Germania on your behalf and provide you with a final estimate before the work begins. • In most cases, rental cars are available at or near the participating shop, too, so you can get on with your life while the repairs are being made. • When your vehicle is ready, just return the rental car, pay your deductible and drive away. Partnering shops are located across the state, fromEl Paso toOrange, and they’re ready to provide Germania members with outstanding service. Find your nearest Germania Premier Service location at GermaniaInsurance.com. Navigate Claims with Germania Premier Service
Spring, summer, fall and winter are revealed to us each year through seasonal signals of change. Whether it’s rain and cooler temperatures or leaves changing color, these signs remind us that we should prepare for a change in the world around us. As in nature, we experience change, too, as we progress through life. We call them life events, milestones or benchmarks of growth. Germania Life products can help you prepare for these momentous seasons when you see signs they’re on the horizon. • College graduation, professional moves: When you’ve just bought your first new car or taken on your first big debt, explore Germania’s 5-Year Level Term policy. It’s an affordable plan to ensure $25,000 to $50,000 of debt can be repaid. • New home, marriage: A growing family and a 30-year mortgage often go hand-in-hand. Consider the Germania Life 30-Year Level Term policy that provides plenty of financial protection until the mortgage is paid off. • Empty Nest: When you’re in your peak earning years and your debts are starting to subside, you may find yourself with an empty nest and many opportunities on the horizon. Our 20-Pay whole life plan is a great idea now because it will be paid for by the time you retire. • Retirement: Germania’s Prime Life can give you wiggle room for planning your final expenses without burdening your heirs. Talk to your Germania Life agent about the wide range of options Germania Life provides for every season of your family’s life. Celebrate the Seasons of Life
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NOTICE OF PRIVACY POLICY Germania Farm Mutual Insurance Association and its subsidiaries as well as our business partner, Home State County Mutual Insurance Association, (referred to as “us”) value you as our customer and respect your right to privacy. We collect nonpublic personal financial information fromyou and consumer reporting agencies and about your transactions with nonaffiliated third parties and us. We do this to process, administer, and maintain the products and services you purchase from us. We have in place policies and procedures that limit who may access or use your nonpublic personal financial information that comply with state and federal regulations and our own high standards regarding privacy and confidentiality. We only disclose your nonpublic personal financial information to affiliates or non-affiliates as permitted by law. A full privacy policy notice is available at www. GermaniaInsurance.com/privacy-security-legal or by calling us directly at 800-392-2202 and requesting one. If you are interested in seeking a position on Germania’s Board of Directors, please see the nomination process and additional governance information contained on our Corporate Governance site at GermaniaInsurance.com. Germania seeks candidates for Board of Directors Elections to the Germania Board of Directors for Districts 12, 14, 18 and 22 will be held at their respective 2018 April Local Chapter meetings. Germania directors serve for a term of three years and may seek re-election. An individual interested in serving on the board will be evaluated by our Board’s Nominating Committee for his/her governing experiences and skills for effective board leadership.
Germania’s new investigation unit aims to cut cost of fraud
Denise Baldwin is one of Germania’s special fraud investigators working hard to prevent and detect insurance fraud.
Germania has set its sights on insurance scammers with the initiation this year of a Special Investigation Unit, trained to root out and prevent costly fraudulent claims. Insurance fraud is common, according to the FBI, and costly to carriers and policyholders alike. “Insurance fraud is a growing and costly problem for insurance companies,” said Germania’s President and CEO Paul Ehlert. “We owe it to our policyholders to make fraud prevention and detection a priority.” The FBI reports there are an estimated $40 billion a year in non-health insurance- related fraud. With 7,000 companies that collect more than $1 trillion in premiums every year, there are ample opportunities for fraud. The new claims fraud Special Investigation Unit will go after “soft fraud” as well as “hard fraud,” said Denise Baldwin, one of two specialist unit managers. Soft fraud includes “enhanced claims,” in which the insured or claimant reports damages in excess of what occurred. Hard fraud includes deliberate destruction of property,” Baldwin said. “It happens. We know it. And it’s happening all over Texas,” she said. The role of SIU is to create reliable documentation of fraud that can be used in prosecution of fraud cases. But it’s important that an insurance company focuses first on providing fast excellent claims service, Baldwin said. “We’re in the business of paying claims. That’s what we do. We’re not a law enforcement agency,” she said. “Our mandate is to pay what we owe for the benefit of our policyholders.” Having a good Special Investigations Unit is a deterrent to fraud, she said.
4 | Germania Today
That text can wait.
In March, Jack D. Young, 20, turned his smartphone into a weapon when he texted while driving, veered into the oncoming lane of traffic and killed 13 senior citizens on their way home from a church retreat. While trapped in his crumpled pickup, Young was overheard saying, “I’m sorry. I’m sorry. I was texting on my phone.” This year the Texas Legislature passed House Bill 62, making it illegal to text or e-mail while driving throughout the state. The law goes into effect Sept. 1, 2017. Texas is the 47th state to ban texting while driving. Only Arizona, Missouri and Montana have yet to outlaw this dangerous activity. Texting has been directly linked to 1.6 million accidents nationwide every year and is responsible for 11 deaths of teen-agers every day across the United States. We know the statistics: Texting makes you 23 times more likely to have an accident. It makes you 6 times more likely to cause an accident than driving while drunk. We hear and read the warnings, yet we continue to be distracted drivers. “It’s more than just texting or e-mailing while driving. People are checking Facebook and watching YouTube videos,” said Loreen Shay, Germania casualty claims unit manager. “Having access to technology as a whole reduces your focus on the road.” The new law could have a big impact on how accident liability is handled, too. “Texas is a comparative negligence state — so we can divvy up the fault based on what caused the accident,” Shay said. That means that in Texas, which uses a modified comparative fault rule, people injured in a car accident cannot recover damages from the other party if they are 51 percent or more
at fault for the accident. So if you’re texting, e-mailing or otherwise distracted when hit by another vehicle, you may still be considered at fault. Breaking away There’s science behind the urge to text or e-mail while driving. According to Dr. David Greenfield, founder of The Center for Internet and Technology Addiction, when your phone alerts you of a message, your brain releases dopamine in anticipation of something potentially pleasurable. He believes addiction drives the behavior of reacting to those alerts, so even though you know it’s dangerous, you still take the chance. In addition, FOMO — fear of missing out — overrides your knowledge of the statistics and facts associated with this unsafe (and now illegal) behavior. Texting, surfing, e-mailing and chatting in the car are also a part of our “always on” society that values fast replies, pithy comments and status updates about our every activity and emotion. If you find yourself unable to control your social urges while you drive, try some of these strategies for breaking the habit: • Turn off your phone. Give it a rest. Let it reset. • Put your phone out of reach in the trunk or glove compartment. • Hand your phone to a passenger and let them be the phone pilot. • Set auto replies for texts and e-mails, then mute the alerts. Choose to arrive alive. Don’t text and drive. And now in Texas, don’t break the law.
Fall 2017 | 5
During the extended Texas legislative session, lawmakers passed an important bill that provides more protection from the rampant storm chasers who often prey on homeowners following major storms. “After many storms, some lawyers file lawsuits against insurance companies before an insurance claim is even filed by the homeowner,” said Jana Randolph, a Germania Claims unit manager in the Dallas- Fort Worth area. “These lawsuits can delay the settlement of a claim for two years or more, meaning repairs can’t be done and homeowners are inconvenienced eight times as long as they would have been had they just filed the claim and worked with the insurer. But unscrupulous lawyers have a charming way of convincing people that insurance companies are trying to cheat them. In fact, it has often been the lawyers who stood to gain the most from these frivolous lawsuits.” Effective Sept. 1, 2017, the “hailstorm bill” adds several new provisions to the Texas Insurance Code affecting first-party property insurance claims. The bill creates a new Chapter 542A for weather-related claims involving the “forces of nature,” including earthquake or earth tremor, wildfire, flood, tornado, lightning, hurricane, hail, wind, snowstorm or rainstorm. The new code provisions offer several benefits to Germania members: • A policyholder who makes a claim against an insurer must provide a pre-suit notice to the carrier at least 61 days before filing a lawsuit. The letter has to state a specific amount of damages and attorney fees incurred to date. “This gives insurers, homeowners and contractors an opportunity to resolve any disputes about the estimates or claim without a protracted waiting period,” Randolph said. • The percentage of the settlement fee that attorneys can earn has been limited in the new legislation, making frivolous and broad- sweeping litigation less appealing to opportunistic lawyers. If the pre-suit demand proves to be excessive as compared to the damages recovered at trial, the attorneys’ fees will be adjusted accordingly. • Even though Germania settles most claims without any litigation, the new legislation stands to help the entire insurance industry in Texas. “By reducing our internal legal costs and attorney-fee payouts, Germania will members benefit from lower costs of doing business,” Randolph said. A side effect of the legislation may be fewer blaring commercials, billboards and fliers from trial and personal injury lawyers, she said. “These distractions paint insurance companies in a bad light,” Randolph said. New‘Hailstorm Bill’Makes a Dent in Lawsuit Abuse
Germania FarmMutual Insurance Association and Subsidiaries CONSOLIDATED BALANCE SHEET As of December 31, 2016 (unaudited)
Admitted Assets Cash and Investments Real Estate and Equipment Premiums Receivable Accrued Investment Income Reinsurance Recoverable Net Deferred Tax Asset Federal Income Tax Recoverable
$459,042,764 4,821,026 115,200,420 3,663,143
14,576,273 22,103,225
4,557,908 5,480,208 $629,444,967
Other Assets Total Assets
Liabilities and Surplus Unearned Premiums Loss and Loss Adjustment Expenses Notes Payable Life Future Policy Benefits
$211,598,055 86,217,767 10,123,198 75,203,354 46,717,764 429,860,138 199,584,829 $629,444,967
Other Liabilities Total Liabilities Policyholders’ Surplus Total Liabilities and Surplus
CONSOLIDATED INCOME STATEMENT For the year ended December 31, 2016 (unaudited)
$398,840,722 10,048,485 388,792,237 245,732,667 45,691,945 106,346,558 4,820,440 402,591,610
Net Premiums Written Change in Unearned Premiums Net Premiums Earned Net Losses Incurred Loss Expenses Incurred Underwriting Expenses Incurred Increase in Life Future Policy Benefits Net Losses and Expenses Incurred
(13,799,373)
Underwriting Loss
14,997,591
Net Investment Income
1,502,358 2,700,576 (2,998,506) $5,699,082
Other Income Net Income before Taxes Federal Income Taxes Net Income
GERMANIA FARM MUTUAL INSURANCE ASSOCIATION CLAIMS PAID BY PERIL
Storm
142,583,510 24,275,181 16,718,619
Fire
Water Theft Other Total
2,244,149 6,615,612
192,437,070
6 | Germania Today
Dollars and Sense
Make Your Claim Directly Texas is number one again, but this time it’s a dubious honor. The Texas Department of Insurance reported that hail losses in Texas in 2016 exceeded $5 billion, the highest annual losses ever recorded. Luckily, 2017 hasn’t been quite as hail-bent on damage, but tornadoes and storms have still racked up more than $1 billion in losses so far this year. When you’re impacted by a storm, the only figure that matters is Number One. “We go out of our way to ensure our policyholders have easy, fast ways to file their claim,” said Greg Jensen, Germania’s director of Casualty Field Claim Operations. “The faster they file, the quicker we can respond and help them get whole again.” There are two simple ways to file a claim. Be sure to have your policy number, the date of the loss, the address of the loss and a brief description of the loss on hand. 1. Go to GermaniaInsurance.com and follow the links for reporting a claim. NOTE: If your claim involves the loss of life or severe injury, or it has caused your home to be unlivable, phone Claims Direct at 877-GERMANIA for immediate help. at 877-GERMANIA. By calling this number, you will reach a shorter menu that will get you in touchwith a claims professional faster than if you call the main switchboard number. Use the Claims Direct number for first notices of claims and follow-up questions about your existing claims. 2. Call Claims Direct
Credit unions have become one of the last bastions of old-fashioned customer service. The cooperative, not-for-profit nature of credit unions means they put the interests of their members first, returning profits to those members through lower loan rate offers, low-or-no-fee services, and often higher savings rates than what for-profit banks offer. On average, credit union households save about $159/year in fees as compared to similar households using a bank. If personal attention and savings aren’t enough incentive for you to joinGermania Credit Union, then maybe you’ll be swayed by how safe your money will be. GCU, like other credit unions nationwide, is financially secure with individual deposits up to $250,000 backed by the National Credit Union Association, a U.S. government agency on par with the banking industry’s FDIC. Membership in the Germania Credit Union is open to Germania policyholders, employees and agents, as well as individuals who live, work, worship or attend school within a 10-mile radius of the Germania Credit Union office in Brenham. Like most other credit unions, GCU extends eligibility to its members’ families, too, including spouses, children, brothers, sisters, parents, grandparents, grandchildren, nieces, nephews, aunts, uncles, fathers-in-law, mothers-in-law and cousins. To take full advantage of GCU’s great rates, lower fees and personalized service, complete and return the application available at GermaniaCreditUnion.com , or join in person at our friendly office located at 507 Highway 290 E. in Brenham. For more information, call GCU at 979-836-5224. Where you matter most
Fall 2017 | 7
PERIODICAL
PO Box 645 • Brenham, TX 77834-0645
Honey Yogurt with Cherry Compote
1 lb. fresh cherries, pits removed 3 1-inch strips lemon zest 3 tablespoons sugar
1½ cups plain Greek yogurt 3 tablespoons wildflower honey Pinch of coarse salt
Preparation: Bring cherries, lemon zest and sugar to a simmer over a medium heat, cooking 8—12 minutes until fruit is tender and juices coat a spoon. Remove lemon zest and allow cherry compote to cool. Mix yogurt, honey and salt in a small bowl. Divide yogurt into four serving bowls and top with cherry compote.
Serves 8
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